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A general view is seen during a baseball game at Nationals Park as we look at the ouster of Gambet DC and introduction of FanDuel to the Washington betting scene
A general view is seen during a baseball game between the Washington Nationals and the Los Angeles Dodgers at Nationals Park. Photo by Mitchell Layton/Getty Images via AFP.

The dispute regarding the status of the Washington, D.C. legal sports betting market reached a climax on Monday with the removal of Gambet DC and the introduction of FanDuel, one of the top sports betting platforms.

The Office of Lottery and Gaming (OLG) announced on Monday that it has ended its partnership with the consistently underperforming Gambet DC app, which was subcontracted by Intralot for sports betting. OLG has opted to work with a more reputable and successful company in the legal U.S. sports betting industry.

The announcement comes after months and even years of questioning Gambet DC’s success in the DC sports betting industry. During a recent meeting of the D.C. Council Committee on Business and Economic Development, Kenyan McDuffie, the committee’s Chair, expressed his concerns, along with others, about the company’s disappointing results.

He stated that he has received numerous complaints from residents regarding the district’s poor performance in sports betting. He agreed with their concerns about issues such as usability, customer service, and dwindling revenue. He emphasized that the current model is clearly ineffective.

This indicates that DC residents will soon have the opportunity to place bets using FanDuel’s high-quality mobile app and at a physical FanDuel location, all while enjoying special promotions from DC sportsbooks. These customers will also have the option to stop using the criticized Gambet DC platform, which has received negative reviews since its launch in the nation’s capital.

The new arrangement

Although Intralot remains the dominant player in the sports betting apps market, FanDuel will now serve as its primary subcontractor. The inclusion of FanDuel, a highly popular platform, in place of the problematic Gambet DC app is a significant victory for sports bettors in the jurisdiction, as well as for lawmakers and tax programs that rely on sports betting tax revenue in the District.

Frank Suarez, who serves as the executive director of OLG, stated that FanDuel’s top-notch services will help the District of Columbia generate maximum tax revenue from its current contracts this year, while also providing an exceptional experience for residents aged 18 and over.

Intralot will now be in charge of covering the operating expenses of the DC legal sports betting platform under the revised agreement. Additionally, they will need to pay a $5 million fee to the Office of Lottery and Gaming.

The fee itself will generate essential revenue for the District’s legal sports betting platform, while FanDuel’s reputable and comprehensive platform will further contribute to the industry’s profitability in the District.

What’s next?

Replacing Gambet DC kiosks with FanDuel DC will be a gradual process in the District, with the transition expected to take some time. This spring will mark a similar timeframe to when the switch from Gambet DC to FanDuel took place.

In the DC market, customers will enjoy competitive betting lines without the usual issues associated with Gambet, while also gaining access to FanDuel’s wide range of legal sports betting markets, bonuses, and reputation for credibility.

But…

While the arrival of FanDuel in DC is welcomed, it does not address the ongoing concerns surrounding the lack of competition in the District.

BetMGM has a retail sportsbook located at Nationals Park, and their mobile app can be accessed within a two-block radius of the facility. Caesars Underscoreg also has a retail location at Capital One Arena, where their Washington DC sports betting app is available within two blocks of the venue.

FanDuel is set to become the exclusive sports betting app available to Washington DC residents across the entire jurisdiction.

Now that Gambet DC is no longer in the picture, the DC market may shift its focus to replacing the lottery model, which is both unique and somewhat restrictive. This model has faced scrutiny in several jurisdictions across the country.